United Rentals, Inc. · NYSE:URI
United Rentals — Merger or Acquisition (January 2017)
10 slides from United Rentals's merger presentation, Jan 25, 2017
Slide 1: United Rentals to Acquire NES Rentals
United Rentals to Acquire NES Rentals Investor Presentation January 25, 2017 United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved.
Slide 2: Introductory Information
Introductory Information This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. Forward-looking statements involve significant risks and
Slide 3: Transaction Highlights
Transaction Highlights URI acquiring a leading U.S. aerial-focused rental provider with 2016E revenue of $369M and EBITDA of $155M(1) • Consistent with United Rentals’ “Grow the Core” strategy: – Increases scale in key geographic markets Strategic – Expands cross-sell opportunity Overview • Leverage
Slide 4: Transaction Consistent with Disciplined M&A Strategy
Transaction Consistent with Disciplined M&A Strategy Strategic Financial Cultural Invest capital at attractive risk-adjusted Access to new customers Safety returns over cycle Supports growth in attractive markets • Growth Talent Enhances cross-selling • Returns Customer focus • FCF B
Slide 5: NES Overview
NES Overview Business Description Fleet Mix (~$900M OEC) • Aerial-focused rental company serving the Eastern half of Other 10% the U.S. Cranes 9% • 2016E revenue of $369M and EBITDA of $155M(1) 47% Booms • ~$900M OEC (~25K units) at year-end 2016 Forklift 18% • Balanced mix of exposure between const
Slide 6: Strong Footprint in Core Markets
Strong Footprint in Core Markets Map Key URI branch NES branch United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved. 6
Slide 7: Financial Highlights
Financial Highlights 2012-2016E Key Financial Metrics Highlights Total Revenues (millions) EBITDA Margin • 2012-2016E total revenue CAGR of ~5% $450 42.1% 45% 41.5% 38.2% • Improving profitability: $400 $378 40% 36.9% $369 34.5% $347 $350 35% • 2016E EBITDA margin 42.1% vs. 34.5% in 2012(1) $317 $30
Slide 8: Overview of Synergies and Cross-Sell Opportunity
Overview of Synergies and Cross-Sell Opportunity Identified Synergies Cross-Sell Opportunity Overview • URI targeting $35M of annual cross-sell rental revenue by Fleet Procurement $5-10M Year 3 Savings • Estimated $150M of total opportunity to cross-sell URI’s full-suite of rental offering to NES’ e
Slide 9: Appendix
APPENDIX United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2017 United Rentals, Inc. All rights reserved. 9
Slide 10: EBITDA Reconciliation
EBITDA Reconciliation The table below provides a reconciliation between estimated net income and EBITDA for CY2016 (amounts in millions).(1) Net Income $19.7 Provision for Income Taxes 0.1 Interest Expense, Net 38.1 Depreciation of Rental Equipment 95.6 Non-rental Depreciation and Amortization 2.1 E
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